Somalia has entered into an agreement with the Nairobi Securities Exchange (NSE) to set up a stock market in its capital, Mogadishu. The Somalia Stock Exchange Investment Corporation (SSE) with the support of the NSE will establish a securities exchange business involving the trading, settlement, delivery and other stockbrokerage activities.

Ambassador Idd Mohamed, Ambassador Extraordinary and Deputy Permanent Representative of Somalia to the United Nations, said the SSE shall be responsible for the implementation of the Somalia Stock Exchange and its subsequent operation.

The NSE will offer technical assistance to the SSE and will together explore the location of the Exchange, development of human capital, the trading mechanism and the development of shariah products and services. The SSE will be housed in Nairobi before it is shifted to Mogadishu.

“NSE shall have primary responsibility for the technical development of the Somalia Stock Exchange including identifying the most suitable partners and expertise for the operations of the Somalia Stock Exchange.” said NSE chief executive Peter Mwangi.

Somali has witnessed relative calm in several months with the militant Al-shabaab group losing its grip on the country. The country will be holding elections later this month which is expected to usher in a new government. This is set to open numerous business opportunities as Somalis in the Diaspora flock back home.

“We expect to see major international investors after the new government is set up and the stock exchange will help attract these investors,” said Mohamed who was signing on behalf of the SSE.

The NSE has been involved in the development of other markets in the region. The NSE is a founder member of the African Securities Exchanges Association (ASEA) and the East African Securities Exchanges Association (EASEA).Though EASEA, the regulations and standards of the EAC stock exchanges have progressively been harmonized.